Using the information provided for Lemon Inc., prepare a monthly flexible manufacturing overhead budget (use relevant range values in 1,000 unit increments).

• Monthly production range: 12,000-15,000 Units
• Budgeted Variable Manufacturing Costs per unit:
  • Direct Materials $7
  • Direct Labor $13
  • Utilities $4
  • Other Overhead $3
• Budgeted Fixed Monthly Manufacturing Costs:
  • Property Taxes $2,000
  • Supervision $6,000\
• Answer:
• Flexible Manufacturing Overhead Budget for Lemon Inc. Monthly Production in Units Variable Overhead (Utilities + Other Overhead) Fixed Overhead (Property Taxes + Supervision) Total Overhead 12,000 $84,000 ($7/unit x 12,000 units) $8,000 ($2,000 + $6,000) $92,000 13,000 $91,000 ($7/unit x 13,000 units) $8,000 ($2,000 + $6,000) $99,000 14,000 $98,000 ($7/unit x 14,000 units) $8,000 ($2,000 + $6,000) $106,000 15,000 $105,000 ($7/unit x 15,000 units) $8,000 ($2,000 + $6,000) $113,000

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